DISASTER PLANNING LESSONS LEARNED September 16, 2014 Carol Musumeci, Risk Manager, Brookfield Properties Jim Boccher, VP Commercial Disaster Restoration, ServiceMaster Recovery Management Tim McGinnis, Willis Construction Ken Giambagno, Willis Forensics & Complex Claims David Passman, Willis National Property Claims

Disaster Planning – Lessons Learned | 1 Hurricane Sandy: As it Happened (Wall Street Journal)

Key Assumption The larger and more complex a project, the greater the need to prepare for the probability of a catastrophic event occurring and to understand the claim process. Disaster Planning – Lessons Learned | 2 And YES, this could happen to you!!!!

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Risk Management Know Your Project  Is it near the coast or other large bodies of water, a high hazard wind zone, a fault line or any other topography feature that could give rise to a catastrophic event? Are you using acceptable methods of protecting the ongoing work? Understand Your Contracts  Make certain that owners, contractors, sub-contractor responsibilities are addressed in the construction contracts Make certain you are clear on who will sustain the deductible and non-insured costs Make certain your Builders Risk or other insurance vehicle clearly addresses the responsibilities outline above Try to ensure that all parties involved understand their obligations in the event of a loss Successful insurance claims are partially dependent on the documentation provided to the insurer  Develop now or be familiar with the existing documentation collection process – insurers need to see the support behind the change orders, including subcontractor materials and labor Preparation Prior to an Event Disaster Planning – Lessons Learned | 4

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After the Event A management plan defining all individuals roles, responsibilities and scope of activities Agree on a process to develop the scope and value of the loss and come to an agreement with the insurer’s adjustment team on that process Develop and agree upon milestones for partial claim submissions & partial payments Be prepared to attempt to protect high value or long lead time installation & equipment Develop a critical path to recovery with an understanding of impacts on project Understanding mitigation possibilities Obtain agreements from insurer adjustment team early in the repair process Real Life Adventures – Superstorm Sandy A Brokers Perspective Disaster Planning – Lessons Learned | 6

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After the Event Establishment of the team and assignment of tasks Managing the moving parts & documenting expenses Developing and managing corporate priorities Real Life Adventures – Superstorm Sandy A Risk Managers Perspective Disaster Planning – Lessons Learned | 8

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After the Event Important things to consider in preparing for a potential event Need for specialized skills and equipment Repair vs. replacement of key installations Real Life Adventures – Superstorm Sandy A Restoration Contractors Perspective Disaster Planning – Lessons Learned | 10

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After the Event Understanding the documents required to demonstrate a loss Soft cost issues and considerations Delay claim issues and considerations Immediately following the loss develop a loss management plan detailing the roles and scope of each member of the claims team as well as milestones (target dates) for partial claim submissions and advance payment requests Real Life Adventures – Superstorm Sandy A Forensic Accountants Perspective Disaster Planning – Lessons Learned | 12

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